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HSBC UK Private Banking Introduces Addepar Platform, Boosts Offerings

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Key Takeaways

  • HSBC UK Private Banking adopts Addepar to enhance wealth reporting for high-net-worth clients.
  • The platform supports alternative assets, multi-manager data, and holistic portfolio views.
  • This move aligns with HSBC's global strategy to expand private banking and digital capabilities.

HSBC UK Private Banking, a subsidiary of HSBC Holdings PLC (HSBC - Free Report) , has adopted the Addepar platform, which is particularly designed for wealth managers. This move comes after its adoption in the US Private Bank, with plans for rollouts in the Channel Islands and Luxembourg later in the year.

Details of HSBC’s Move

HSBC UK Private Banking provides services to domestic and global ultra and high net worth clients alongside family offices.

The Addepar platform offers a superior client reporting experience, handling complex aspects such as alternative investments and account aggregation. It allows relationship managers and investment advisers to smoothly deliver customized, comprehensive performance reports and investment insights.

Moreover, the platform can consolidate performance data for clients with assets managed by other wealth firms, allowing them to view a full picture of their complete investment portfolio in one place.

Charles Boulton, head of Private Banking, HSBC UK, said, “Addepar's platform will mean that our clients have the best possible insights at their fingertips to manage an increasingly complex financial landscape. Being able to present a client's entire portfolio to them so they have a holistic view of their wealth across multiple currencies and multiple wealth managers will be a big step forward for us.”

James Thomson, head of investment counselling, HSBC UK Private Banking, stated, “As a leader in the alternatives space, with more and more private banking clients wanting to have a proportion of their portfolio in this asset class, Addepar's advanced alternatives reporting capabilities was [sic] an important selling point.”

Rationale Behind HSBC’s Adoption of Addepar

HSBC’s move aligns with an increased focus on high-net-worth and ultra-high-net-worth clients. In mainland China, the bank is growing its wealth business through lifestyle-focused centers and acquisitions like Citigroup’s retail wealth arm in June 2024, digital upgrades and hiring talent.

Further, HSBC has been boosting its presence through initiatives like launching Global Private Banking, acquiring L&T Investment Management, and enhancing Premier Banking. 

Over the past six months, shares of HSBC have rallied 24.6%, outperforming the industry’s growth of 21.6%.

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Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Digital Enhancement Efforts by Other Global Banks

Last month, Deutsche Bank (DB - Free Report) collaborated with International Business Machines (IBM - Free Report) and finaXai, a Singapore-based AI company.

By leveraging IBM’s innovative technologies, Deutsche Bank aims to streamline workflows, reduce operational costs and improve efficiency across all areas of its business. The transition from legacy systems to IBM's advanced cloud and AI solutions will allow DB to develop a more agile, scalable, and secure technology stack.

Similarly, Citigroup Inc. (C - Free Report) unveiled Citi AI, a range of artificial intelligence tools aimed at enhancing internal processes for Hong Kong employees.
 
Citi AI aims to maximize efficiency in operations by offering support in information retrieval, document summarization, and writing electronic communications for employees.

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